A new production line will be set up within the existing plant site that will add 6 lakh units annually to take up the total capacity of the facility to 24 lakh units before the end of 2016, HMSI said in a statement.

"Combined with the additional capacity of upcoming 4th plant (in Gujarat), which is scheduled to become operational in the first half of 2016, this expansion will increase HMSI's overall annual production capacity to 64 lakh units," it said.

The company's two other plants are at Manesar in Haryana and Tapukara in Rajasthan. HMSI President & CEO Keita Muramatsu said: "Honda is strengthening its 'Make in India' resolve through steady and strategic investments with a long-term objective of creating 39 percent additional capacity within 3.5 years.

"We are planning to increase the number of associates in the plant by approximately 1,900. This investment will provide new opportunities for expansion of brand Honda in the largest two-wheeler market of the world."

HMSI sales grew 22 percent in the April-February period this fiscal at 40,53,867 units as against 33,29,882 units in the same period last fiscal.